Antoinette Pticek
Pticek’s Bakery

Note from Chuck Krugel:  Due to confidentiality limitations, we can’t divulge too much information about what transpired, but it was a very complex matter that was very satisfactorily resolved.

• http://www.chicagobusiness.com/cgi-bin/news.pl?id=33130 (Crain’s Chicago/AP article)
• http://progressillinois.com/2009/2/26/republic-windows-workers-back-to-work (Progress Illinois article)

You might recall this plant being in the news because it was announced that right after the 11/08 presidential election, and during the December holiday season, plant workers (about 240 of them) staged a multi-day 24/7 sit in at the plant to protest the closing of the plant, without sufficient prior notice, nonpayment of final wages, and their bank refusing to lend them money for payroll and other expenses, even though the bank received substantial funds from the former president’s initial stimulus (bailout) package. This was reported in national and international news and drew commentary from many politicians and pundits.

As discussed below, you have to read some of the earlier news stories and read between the lines to understand the importance of this takeover.

Republic is a traditional brick and mortar company that’s been operating here for years.  Incidentally, the company was also the recipient of numerous tax breaks given to industrial companies maintaining a Chicago presence, using Chicago workers, training employees, insurance, benefits, etc.  How that money was used is also the subject of debate, but that’s another story.

However, the union, United Electrical Workers Local 1110, used a business-like and progressive approach in helping to save the company.  Sort of like using a “free agent” model, they went into the marketplace and sought a new owner to take over the company with the same employees.

It was announced today that Sunnyvale, CA, based Serious Materials Inc., bought the company.  I’m pretty sure that concessions were made, but haven’t heard about those yet.  But this is a really constructive approach to labor management relations (more constructive than the proposed Employee Free Choice Act).   A company is saved, jobs are saved, and perhaps new jobs are created.

Congratulations to the employees, union, the company and our economy!

It was a fantastic & frank forum.  The animus against this act was palpable in the room; as was Congressman Roskam’s.

The general consensus is that from a management perspective, this is one scary bill. It basically calls for non-secretive union elections (union elections are currently secret ballot) & permits 3rd party arbitrators to impose contractual terms on the parties, if they’re unable to agree on a contract. 

The law passed easily through the House of Representatives during the last Congressional session, so it will probably pass through the House this session again.  The Senate seems to be a tougher call because according to Congressman Roskam, there are some Republicans like Pennsylvania’s Arlen Specter who are currently in favor of it.  However, not all House or Senate Democrats support the bill either.

My concern isn’t an increase in the number of union employees in the private sector, which many critics argue will happen (I don’t think this is a given because private sector union membership has been in decline for decades & labor seems unable to get its act together).  My concern is that along with the EFCA & other laws already signed by President Obama (recent Executive Orders (see Project Labor Agreements & Non-Displacement of Workers), the costs to manage union election campaigns will greatly increase (I’m talking about prevention, avoidance & decertification campaigns) & stifle innovation due to draconian rules enforced by unions (even at the expense of labor).

Also, the possibility of increased labor costs in the public sector, due to these same recently enacted laws, may increase the cost of private sector labor, and render us non-competitive in foreign markets as well as increasing outsourcing to those markets.  One fear of many opponents of EFCA, as well as other similar laws is that manufacturers will leave the U.S.

Hopefully, if the law does pass, then Congress will similarly allow the same process for union decertification elections.